News

Spring Budget U-Turn – No increase to Class 4 NIC afterall

The Chancellor of the Exchequer has delivered the final Spring Budget. This is not the first time this has been attempted however. Twenty four years ago, Norman Lamont, made the same announcement only to be sacked ten weeks later! Listening to Philip Hammond, at times one did wonder if this was not a Labour budget given the…

When paying PAYE earlier might be beneficial

There are special rules that determine when an employee is deemed to be paid for tax purposes. Basically, the legislation seeks to ensure that PAYE is applied as soon as is reasonably possible. Or, according to HMRC, as soon as the employee is able to benefit from their salary.

Small business singled out again

The Chancellor of the Exchequer has delivered the final Spring Budget and one which was not particularly impressive.

Dividend tax allowance

As from 6th April 2018 the tax-free allowance will be reduced from £5,000 to £2,000. This will mean that director-shareholders will pay an extra £225 on their dividend income. Apparently, Mr Hammond believes this will help deter businesses incorporating purely…

HMRC penalties could be suspended – conditions apply

Where a tax return contains an inaccuracy that was due to the taxpayer failing to take reasonable care, then that error is deemed to be ‘careless’ and carries a maximum penalty of 30% of the tax lost due to the error. HMRC do however have the power to suspend such penalties where the conditions allow them to.